Words About Things

A recent report quoted in the Times says that one in five men have a savings account that their partner knows nothing about. These accounts contain on average around £2000 hidden away from prying eyes. Whilst it is not unusual to have separate savings accounts it may come as a surprise to some women that their boyfriend or husband has a secret account. In contrast only 10% of women had an account that their partner did not know about.

One theory is that men wish to have a portion of their savings which are not accessible to their partners. This isn’t necessarily just money to spend in strip clubs and on the horses.  The accounts may be more symbolic than useful although they may also have practical uses. They may be long term investments or instant access savings accounts for day to day spending. They could be used for a variety of reasons:  guilt free spending, risky investments or just to ensure a feeling of independence. The fact that it is men who are more likely to have these accounts  sheds a little light on the differences between how men and women think about money:

“It comes as no surprise that more men have a savings account unknown to partners, and more men make major financial decisions without their partners. Both on a biological and societal level, men perceive such concepts as ‘success’, ‘dominance’, ‘ambition’ and ‘money’ to be bound up together, leading men to view money as the tangible proof of their personal and work success. The more money that is stashed or negotiated, the higher a man deems his self-image and social standing to be.” – Psychologist Donna Dawson

It might not entirely be based on self image however, consider the rise in divorce rates. A secret account may be a less offensive step for a man to take than a prenuptial agreement.  Your partner discovering your secret account may be worse however than both agreeing on a Pre-Nup. Hiding savings (or even worse, debt) is never a good idea however, being open and discussing money must be the best policy.

So if your partner turns out to have a secret savings account should you be worried? Perhaps not but you should necessarily be excited either, only 7% of people with a secret account said that they were saving money to spend on a present for their partner.

A recent survey has shown that almost half of Britons are unable to save. Only 60 percent of those asked managed to put money into their savings account each month, saving on average £206. Back in January 34% said that they were unable to save. Of those who were able to top up their savings 65% used instant access savings accounts.

Another survey back in July found that a quarter of people had no savings put aside at all. With unemployment still rising those who are not saving must be concerned about what will happen if the are made redundant. We are lucky enough in this country to have support systems in place for those out of work but it is still not a good time to be job hunting.

Those unable to save should console themselves with the fact that ISA interest rates have hit an all time low. Its great to have saving to fall back on but those savings wont be growing by much until the economy recovers.

Here are 10 useful tips for keeping the cost of your annual holiday down. There is no point having an expensive holiday and having to worry even more about money when you get back! Saving a bit of money doesn’t necessarily mean making huge compromises (don’t worry I won’t be recommending a trip to Milton Keynes) just a bit of forward planning.

1. Book Early. I know this is a bit of an obvious one but it is worth repeating. Train travel, hotel rooms, car rental and Flights are often cheaper if you book as far in advance as possible.

2. How about staying with friends or taking part in a house swap? Just make sure you organize it well so you don’t end up returning home to find people in your house who expect to stay another night (true story!) [Guardian Home Exchange]

3. Buy your holiday from ebay. I had no idea but apparently people sell holidays they can no longer take via online auctions. This might be a bit of a last minute technique but look on the positive side, you benefit from someone else’s misfortune! [ebay.co.uk travel section]

4. Avoid paying ridiculous ATM fees Phone your bank before you go and find out the best way to reduce cost before you get there!

5. A Camping Barn is a minimally furnished self catering alternative to caravanning and camping. The cost from as little as £7 per person per night and are great for large families. [campingbarn.com]

6. Complain. If your holiday is not up to scratch or your airline sells your seat to someone else then you could get compensation. Sometimes it is necessary to hire someone else to chase a refund but the main thing is not to give up after one reply!

7. look online for discount voucher codes. For example enter FLIPFLOPS as a pro code on the easycar.com site for a summer discount. [vouchercodes.co.uk]

8. Avoid paying ridiculous mobile phone fees. Phone your operator before you go and find out the best way to reduce cost before you get there!

9. Compare prices online to make sure you’re not paying over the odds for your flight or hotel room. [travelsupermarket.com]

10. For those who don’t work hard enough outside of holiday time (how many people work in your office? About half of them, arf arf!) how about a working holiday. [workingholidayinfo.com]

Savings rates have hit a record low, in January notice accounts (simply accounts which require notice before withdrawals) paid an average of just 0.29%. Instant access accounts, for instance instant access ISAs, were also at an all time low. The fifth interest rate cut since October occurred on the 5th of February, bringing the rate down to just 1% . All this has lead to worries that consumers will be dissuaded from putting their money in savings accounts. This would only exacerbate the bank’s problems as they will have less to lend.

There are of course other factors involved. The massive amount of job losses that have occurred so far this year will have an impact. While some will be forced to live off their savings, others will see this as a possibility and attempt to save more incase they have to rely on their investments in the future.

Some will choose this as a good time to invest in property. The cut in interest rates makes mortgages a more viable option and it is hoped that this will kick start the stalled property market back into life. Rental prices have been increasing in most areas for the past few years to the point where monthly mortgage payments are often lower than rental prices. Those who have enough money for a deposit will be tempted by low rate first time buyer mortgages in the coming year.

The recession is forcing us to become more aware of the financial situation both nationaly and in terms of our own accounts. With daily updates about the status of various courporate banks on the news each evening it is hard